Conventional Loans


Conventional loans are loans secured by Real Estate that are offered and serviced by non-government sponsored lenders. They are more commonly used by homeowners and buyers with higher reserve amounts and credit scores, and larger down payments. Conventional loan products commonly have pricing incentives tied to the amount of money used as a down payment. Conventional loans at 80% Loan to Value or less DO NOT have a monthly MIP (Mortgage Insurance Premium). Any traditional conventional loan programs at 80.01% or higher have monthly MI premiums that vary based on overall loan to value and borrowers credit profile.


The big advantage of conventional loans is that they often do not come with the amount of stipulations that FHA loans do. Also, because these mortgages require higher down payments than the others, home equity can build up faster.


If you are interested in applying for a conventional loan to refinance a current home or purchase a new home please feel free to apply through our easy online application section or contact us directly at (909) 457-0257.